I have 2 debts on my credit report that are both charge offs. Both are credit card debts over the amount of 1000 dollars. I made bad decisions when i was younger and i am trying to get them either payed, by getting the debtor to agree to a paid in full status on my credit report or explore the option of the state statute of limitations. The statute of limitations in texas is 4 years... so does this mean they can no longer collect on this debt? If i claim the SOL does this mean the debt still remains on my report or can i write the bureus and try to get this taken off?
2007-01-02 10:06:12 · 4 answers · asked by sleek 2 in Business & Finance ➔ Credit
The statute of limitations for collecting a debt applies to the company to whom you owe the debt, not to the reporting of that information. Adverse information remains on your credit report for 7 years from the date of last activity, after which time it will purge automatically. The reporting agencies do not follow state limitations on debt collection practices, as they are not collecting on the debt, but simply reporting it.
2007-01-02 10:41:13 · answer #1 · answered by RedSoxFan 4 · 0⤊ 0⤋
The statue of limitations applies to the date of last activity. Every time you make a payment the clock starts over at day 1. You can contact each creditor and offer to settle the debts for less than the balance in full. Keep in mind that if you settle the debt your credit report will reflect that the full balance was not paid.
The credit bureaus cannot just remove the information. Your best bet is to either pay the debts in small increments and have the creditor update your status to "charged off account now paying" or go for the settlement option. You could probably work out a plan to settle for 75% of the debt if you have enough available cash. Be certain that if you go the settlement route that the remaining balance (the unpaid amount after you've paid them) is less than $600...otherwise you'll receive a 1099-C and then you'll have to deal with the IRS!
2007-01-02 13:32:52 · answer #2 · answered by Inquisitive125 3 · 0⤊ 0⤋
The statute of limitations limits how long the creditor can file a lawsuit to collect from you. It has nothing to do with credit reporting. Accurate negative information can be reported for 7 years. This clock starts when your account becomes delinquent. Even after the statute of limitations expires, the company can still collect, they just can't enforce the debt in court. If you try to do business with the company in the future, they can refuse your business unless you pay the original debt.
2007-01-02 12:56:41 · answer #3 · answered by STEVEN F 7 · 0⤊ 0⤋
From the date of charge off it will be on your report for 7 years whether you pay it off or not.
2007-01-02 10:19:20 · answer #4 · answered by one day at a time 2 · 0⤊ 0⤋